The Role of the Human Resources in the Budgeting Process
The human resources play an essential role in a sound budget process and communication within the company. Likewise, an efficient and effective budget approach is one that communicates about the organizational objectives, allocates resources, provides feedbacks and most importantly, always ask for the employees’ participation, as well as it motivates them to excel in their jobs. Hence, the budgetary communication is important as the participation of the employees in the budgeting process. And, this can be standardized by using budget manuals, budget forms, and formal procedures. Software, Program Evaluation and Review Technique (PERT), and Gantt which all help in facilitating the budgeting process and preparation. In the same manner, the timetable for the budget must be kept. However, budget needs an appropriate timeframe setting in order to achieve the company’s realistic goals as well.
(http://onlinesuccesscentre.com/2010/07/how-to-prepare-a-sound-budget-process-six-steps-in-the-budgeting-process-bottom-up-versus-top-down-budget-plans/)
Furthermore, the perception of the employees is very important in the budgeting process because it determines if the budget approach and allocation used by the company is suitable to the needs and requirements of the employees, if it is aligned with the organizational structure, as well as the participation of the employees lessen the responsibilities of the top management in the designing, planning, analysis of important details that only the employees can really explain vividly the advantages and disadvantages of some limitations in the budgeting process. Furthermore, the budgeting process must be based on the past experience of the company and the potential business advantages that the present business environment can provide to the organization. Hence, the managers’ voice and employees opinions and views are very vital in order to come up with accurate details and figures that needed in a particular project, for all you know, top management authority more often does not have any concrete ideas on the various requirements that every department needs in order to function efficiently and effectively in a regular basis. That is the main reason, that a company hires several managers to lead the tasks in every department and to take charge of disseminating the tasks to every employee. The managers are also the one who do the reporting job about the status of the particular department , as well as if this segment of the organization is getting productive or not. At the same time, the managers act as the representative of the group of employees, and the manager’s act also as the middleman between the top management and the workforce. Without the help of the managers, the top management would not know development of the given job assignment, and would not know that there are employees who are remarkably competitive and deserve a recognition and reward motivation.
(http://hr.toolbox.com/blogs/the-new-hr/using-the-hr-budget-process-to-make-the-hr-function-more-strategic-46590)
Correspondingly, the communication flow is very crucial in the budgeting process because it persuades other employees to adopt the proposed actions or decisions. On the other hand, communication process facilitates the entire organization to understand the principles and the goals of the top management why a particular budget is approved or not approved. In vice versa, the communication process can help the employees to express their views and opinions about a certain project, as well as give them a chance to convince the approving authority to approve the budget allocation that is requested... At the same time, it gives the workforce a chance to share their skills and knowledge on a certain task, event, or project that needs joint effort in order to attain the specific goals of the organization. In view of this, communication is very dominant in every aspect of the organization. It greatly helps the organization to develop a good relationship with its employees as well as with its clients. A good communication process allows a good agreement among the approving authority, the managers and the employees because it is a tool that everyone in the company can exercise his human rights in the workplace.
(http://hr.toolbox.com/blogs/the-new-hr/using-the-hr-budget-process-to-make-the-hr-function-more-strategic-46590)
For the last time, the writer strongly believes that the perception of the employees is very important in the budgeting process. For another reason that steps and actions, as well as the summary of information must be provided by the employees during the budget presentation. This action is very necessary in order to convince the budget approval committee to approve the particular budget allocation. Moreover, the budget documents like details, figures and information provided by the managers and their employees are part of the communication process, since all of them are the communication tool to justify their requirements as part of their jobs; and most of the time, the budget approval to a certain budget allocation creates more productive and competitive employees in the company; as well as it gives motivation to the employees to become more responsible on every assigned task.
(http://www.budgetanalyst.com/Communicate.htm)
References:
http://onlinesuccesscentre.com/2010/07/how-to-prepare-a-sound-budget-process-six-steps-in-the-budgeting-process-bottom-up-versus-top-down-budget-plans/
(http://hr.toolbox.com/blogs/the-new-hr/using-the-hr-budget-process-to-make-the-hr-function-more-strategic-46590)
http://www.budgetanalyst.com/Communicate.htm
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